Autonomous driving tech startup Nuro Inc. raised $106 million in a Series E funding round to support its commercial expansion plans through 2027. The Mountain View, California-based company founded by former Waymo (GOOG) engineers is now valued at $6 billion, down from $8.6 billion in 2021.

The funding round includes participation from new and returning investors, as well as strategic partners. Investors include funds and accounts advised by T. Rowe Price Associates, Inc., Fidelity Management & Research Company, Tiger Global Management, Greylock Partners, and XN LP.

The round brings Nuro's total funding to $2.2 billion to date. The Series E funding will support Nuro's next phase of growth—scaling its AI-based technology platform and advancing commercial partnerships.

"We're excited to see strong investor enthusiasm for our Series E," stated Nuro CEO Jiajun Zhu. "Our technology, years of experience with driver-out Level 4 deployments, and focus on licensing uniquely position us to help automakers, mobility platforms, and commercial fleets accelerate their autonomy roadmaps," he added.

Nuro aims to disclose new investors and strategic partners soon, as it pivots its business model to licensing autonomous software to automakers, rather than building custom autonomous vehicles. The strategy shift followed significant cost-cutting measures, including workforce reductions from 1,400 employees in 2022 to about 700 today. Nuro’s strategy reflects broader challenges in the autonomous vehicle sector, which has faced fluctuating funding and shifting priorities. 

For its part, Nuro has tested its technology on Toyota (TM) Priuses and its own delivery robots in Houston and the San Francisco Bay Area. A 10-year partnership with Uber Technologies (UBER) for food delivery remains active, though Nuro has paused production of its third-generation delivery robot for cost reasons. Chief Operating Officer Andrew Chapin emphasized the company's technical progress and solid commercial partnerships as key to its momentum.

Nuro's new business model puts it closer to competing with other startups such as U.K.-based Wayve, which is preparing to make its commercial debut. 

Wayve CEO Alex Kendall said recently that the company will introduce its driver-assistance system in partnership with global car companies in the U.S. and Germany in the near term. Wayve has set itself apart in the autonomous driving industry by selling its software to automakers, rather than attempting to launch its own service to consumers.